Share this content

Holiday Pay Entitlement for Hourly Paid Employees

The salaried employees receive four weeks paid annual leave.

What is the fairest way to pay employees who are paid weekly on an hourly basis. Their hours vary from week to week?

Thank you for any answers.


Please login or register to join the discussion.

25th Jun 2002 22:57

I agree with Janet

The DTI leaflet states:

If you are a worker whose pay varies with the amount of work done (such as with piece work) or when a week’s pay is partly made up of variable bonuses or commission directly related to that week’s output, then a week’s pay is your average hourly rate multiplied by your normal working hours.

To calculate your hourly rate: divide your weekly pay over the previous 12 weeks by the number of hours you worked during the same period (the pay and hours of non-compulsory overtime is excluded). Any week in which you receive no pay is replaced by the week before the 12 weeks when you were paid, to bring the total to 12.

If you are on commission or performance-related bonuses, 12/13 of any quarterly bonus or 12/52 of any annual bonus is included. Only bonuses specifically related to a week’s work should be included; general ‘profit-sharing’ or other such bonuses are not included.

Thanks (0)
By Anonymous
25th Jun 2002 18:37

working time regs give method
part time employees cannot be treated less favorably than full time workers so if f/t staff get 4 weeks hol part timers must also.
They are entitled to be away from the workplace for four weeks but of course their holiday pay will be based on their own part time earnings.
Problem with your part timers is variable hours week to week. What we do is to calculate the amount payable based on their average weekly pay over the 12 weeks before the holiday is taken.

Thanks (0)